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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (8346)	7/27/2000 4:20:00 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 12617

Eric, Unfortunately, in your example you can be equally screwed even if your broker does has a autoexecution agreement with a market maker. The autoex agreement will only apply to market orders. My comment was not intended to imply that auto-execution was the cure for all ills, only that under such an arrangement it can be to your advantage that there is no obligation to fill the quotes in the order they are posted. When you are on the side of posting the first best quote, it can't help you , but it sure can hurt. I had a brief experience with two different MMs that would auto execute any marketable orders, at least for 100 shares. It was the easiest trading I have ever seen. I could wait till the queue was essentially depleted and then send a matching limit order for an instant execution by the preferred MM. The agreements only lasted about a week in each case, for obvious reasons. Dan